Selling laptop to end-client

[TheCyclingProgrammer]

You sure about that? Last time myco sold some old computers our accountant told us not to charge VAT on them as they were 2nd hand.

Although that was a few years ago and that account went to prison.....

I think the less said about him the better eh? He was wrong.

Additionally, if you are on the FRS and originally reclaimed the VAT on a capital purchase over £2k, when you sell it you need to deal with that sale outside the FRS too (i.e. As you would in the standard scheme).

[Forbes Young]

If you're VAT registered, you have to charge VAT on everything you sell unless its zero rated or exempt surely?

100% correct.

[BolshieBastard]

You sure about that? Last time myco sold some old computers our accountant told us not to charge VAT on them as they were 2nd hand.

Although that was a few years ago and that account went to prison.....

If you're VAT registered, you have to charge VAT on everything you sell unless its zero rated or exempt surely?

[blacjac]

I was wondering why OP didn't put the laptop through the business, even if just as an expense if not that expensive.

Would have had to charge VAT when reselling but presumably ClientCo wouldn't have cared.

You sure about that? Last time myco sold some old computers our accountant told us not to charge VAT on them as they were 2nd hand.

Although that was a few years ago and that account went to prison.....

[zerosum]

So why didn't you buy it through your ltd co?

Why not just grab the receipt now, and claim it as an expense?

Sure, but that would be a different approach. If the end-client wants it, 100% of the expense is defrayed.

[kingcook]

On Black Friday I bought a steeply discounted Windows 8 tablet, which I may use instead if I ever have to go onsite. Didn't buy it through my ltd Co. I won’t use it other than for this contract.

So why didn't you buy it through your ltd co?

Why not just grab the receipt now, and claim it as an expense?

[TheCyclingProgrammer]

Irrelevant from an IR35 angle in my opinion. This is a personal transaction between you and your company's client so you can sell your personal items to whoever you want within reason! Always best to use your own company's equipment to carry out your company's projects wherever possible - from an IR35 angle.

I was wondering why OP didn't put the laptop through the business, even if just as an expense if not that expensive.

Would have had to charge VAT when reselling but presumably ClientCo wouldn't have cared.

[Forbes Young]

I have a feeling I know what the replies on this one are going to be. But hey, for humour/completeness's sake, here goes anyway.

At the start of my current gig, the end-client issued me with a highly secure (but very antiquated) Windows laptop which I heave along on the rare occasions I go onsite (95% remote gig). Most of the time I use a Mac and virtualise.

It’s become incredibly slow and painful to use. It doesn't even have an SSD

On Black Friday I bought a steeply discounted Windows 8 tablet, which I may use instead if I ever have to go onsite. Didn't buy it through my ltd Co. I won’t use it other than for this contract. I had an informal chat with one of their IT guys who said (when he heard the price) they’d be interested in owning it outright and paying me back; they would likely have replaced the antiquated laptop at some point anyway.

I’d like to get an opinion as to whether you guys would steer clear of this kind of transaction from an ir35 perspective.

Irrelevant from an IR35 angle in my opinion. This is a personal transaction between you and your company's client so you can sell your personal items to whoever you want within reason! Always best to use your own company's equipment to carry out your company's projects wherever possible - from an IR35 angle.

[northernladuk]

which I may use instead if I ever have to go onsite.

Wouldn't you be better to find out if this is possible first. Also the validity of the offer before thinking about the complexities of the transaction. Sounds highly unusual.

[TheCyclingProgrammer]

I see the points. And I agree that insofar as it's basically my personal laptop I can do as I damn well please.

Complicating factor would be that it would become a replacement for the laptop they issued me with back at the start. They'd pay, but I'd basically have possession of it until the contract ends.

Who would know? You aren't actually going anything wrong here.

If you're that concerned, sell it at the end of the contract. Ask for cash if you're worried about payments direct into your account.

[sal]

Using client equipment in order to comply to the company security policies is perfectly acceptable and practically the norm.

[zerosum]

I see the points. And I agree that insofar as it's basically my personal laptop I can do as I damn well please.

Complicating factor would be that it would become a replacement for the laptop they issued me with back at the start. They'd pay, but I'd basically have possession of it until the contract ends.

[sal]

If you bought the laptop, it's yours to sell to whomever you want. I can't see what this has to do with IR35 at all. Sell it to the client, stick it on ebay, it doesn't matter.

I guess the OP is worried about receiving funds from ClientCo to his personal bank account. Short of that I also can't see relation to IR35 in such transaction.

Can they pay cash/check?

[TheCyclingProgrammer]

If you bought the laptop, it's yours to sell to whomever you want. I can't see what this has to do with IR35 at all. Sell it to the client, stick it on ebay, it doesn't matter.

[zerosum]

I have a feeling I know what the replies on this one are going to be. But hey, for humour/completeness's sake, here goes anyway.

At the start of my current gig, the end-client issued me with a highly secure (but very antiquated) Windows laptop which I heave along on the rare occasions I go onsite (95% remote gig). Most of the time I use a Mac and virtualise.

It’s become incredibly slow and painful to use. It doesn't even have an SSD

On Black Friday I bought a steeply discounted Windows 8 tablet, which I may use instead if I ever have to go onsite. Didn't buy it through my ltd Co. I won’t use it other than for this contract. I had an informal chat with one of their IT guys who said (when he heard the price) they’d be interested in owning it outright and paying me back; they would likely have replaced the antiquated laptop at some point anyway.

I’d like to get an opinion as to whether you guys would steer clear of this kind of transaction from an ir35 perspective.